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Hi all, welcome back from the weekend. I hope it was a good one for you. I think the "best thing" that happened to us down here in FL was that the Tropical storm that was trying to build down in the Caribbean fell apart. Had it not, its track would have been right up over our heads, with a lot more rain that our area simply can't absorb. So we are indeed thankful for that.

Morning all, welcome to Friday. It is amazing to me how fast weeks fly by. One week ago today I was leaving NJ with my son for the long drive back to FL, and somehow we 1) drove 1100 miles, 2) saw a stock market crash, 3) saw the biggest two day point bounce/gain ever, and it's Friday again.

There was no margin call selling yesterday afternoon. Instead the buy the dip crowd rushed out of the woodwork and in the last hour we soared higher. Okay that's fine, because frankly that's the kind of wicked bounce we thought we were going to get Tuesday, but it didn't hold.

The latest Financial Intelligence Report is now posted on our site, and in it we're discussing the possibility that the market has already "topped out" and now we're going to start a long slow grind lower. Do you agree? Take a read and see if what we're talking about makes sense! We've fallen over 2000 points from the May high, and we feel there's much more to come.

Thursday was an ugly market day. Friday was considerably uglier. Then Monday happened. I’m sure you all know what took place by now. Right after the open the DOW fell 1089 points in a “flash crash”. What was that all about?

Let’s do a bit of recent history. Since February of this year the market has wiggled “sideways” in a “box” so to speak. We had an S&P top at about 2117 and a bottom at about 2040. So for months on end we bounced along inside that range, generally running higher for 2,3 or 4 days and then selling back down for 2, 3 or 4 days. Over and over, wash/rinse/repeat.

I got a call from my friend Ted right around 15 minutes into the close. He said "Are you watching the battle going on in the DOW?!" To which I said no, I had stepped out front to chat with the UPS driver that delivered a package. "Why Ted, what's up?"

He said that the market was whipping up and down in huge 100+ chunks as they try and keep the market green.

I ran in to watch the insanity unfold and it was really incredible. From down 120 to down just 20 to down 150 back to down just 50 to finally end the show with the DOW off 204.

Okay, so last night the Chinese market was once again crashing... and everyone was freaking out. But the Peoples Bank of China decided to ride to the rescue and they did it by cutting interest rates by 25 basis points and their deposit reserve ratio's by 50%.

For weeks we've been talking about something wicked coming this fall. There's approximately 20 different "things" that are aligning for the September time frame that we figured could really rock the markets. Well, they didn't wait. They didn't wait to see what would happen when the UN holds it's meetings or when the Pope visits the White house. They didn't wait for the end of the "Shemitah" and the craziness that often coincides with that. No, they looked at China and the currency wars going on and decided to bail out.

Our opinion is that the market has set a "top" back in May and we're embarking on a long term bear market. Yes there's going to be wicked bounces, yes there will be money to be made trading long and short. But the "long term holds" idea is dead in the water now. We've had 6 years of up, we went too far, and now it's time for some payback. Be careful out there folks.

You all know what happened on Thursday and Friday. It was a blood bath no doubt about it. Overnight it happened again. The Chinese market puked again and because of it, the selling resumed all across the globe. Most of Europe is off 5% on the session. Germany's DAX is now below 10K.

Please NOTE>>> tomorrow (Friday) I'll be making the long trek back to FL by vehicle with my son. He's enjoyed his two weeks of vacation up in NJ with his buddies, saw his Grandfather for a day, and kept incredibly busy and happy. It's been a great trip for him and now... the final curtain is the drive back home. So, I probably won't be posting much if anything, as we want to really get an early start. But that doesn't mean I won't have any chance at tossing up an update, as we do stop now and then of course, so don't be surprised if an email shows up.